Interesting article about Oil

wanghong

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% L9 F4 \* C3 x, V9 ~/ I, NBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
, [: r! Q6 F* J& Jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
$ c& i$ C7 B5 _crude prices improves. This implies also to good names such as Shell,
# t. Y4 z- x0 d$ p6 Y: t% s- hEXXON, BG, BP, Cheveron ....xyz.. oils

* |* X: D3 C1 D$ x: ], E( i5 kRecently OPEC reduced crude oil production twice over just a few
9 k! E2 _+ f, l* V* Z3 N' \7 q& f9 {months. There are three wars going on in Gaza, Iraq and Afghandistan.
. y9 H& B9 I7 x6 O+ [A year ago these things would have spiked the price of crude oil by at
3 s5 T% t" [* t7 R) H7 d. eleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
. K& Q6 Q* `4 p6 b+ h8 F4 jof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
- Q2 X2 g) k0 T1 E8 o/ R9 pThis is the largest find in North America.
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: p9 c7 r; i  j: h3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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1 I# g+ l  K% W. o; i6 R4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
/ M/ X$ Y0 i' xracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
: B, ~2 \5 u* C: ?# kare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
' R: h1 I6 k, H, cto bio-diesel producers. One pork processing plant in Oklahoma is
( c' l6 Q& p3 B/ Lproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
# Z; }: @( _+ fexpected to be built in the future. Much of the energy they produce
1 Q9 U+ \% w, {3 vwill replace oil.

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# D; P8 M/ K& G& R+ N7. Every company in any form of transportaion business is replacing
" v; L& W" K" B/ ]# y  Qolder equipment such as trucks, airplanes, train engines, ships, etc.
2 b; E5 A0 e4 ~( T# Lwith new more fuel efficient equipment. Airlines and railway companies
( x4 `' |: O4 Rare experiencing 20% to 25% better fuel econony with the new
3 o3 l3 T! _9 H' I  xequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
/ }3 v7 J; Z) W* j  q8 Ifuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
7 Q, K9 |/ Q  I; a+ u% z7 {# e; yavailable at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
% s1 w1 F: z# w; Moil wells.
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1 ?' t$ c; E" o; w# b10. Solar, wind and ocean energy is displacing oil as an energy
, j, j6 e: K" t: F: e: qsource. Three new wind turbines are being erected every day in the US.
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$ C) `2 \7 w! ]' U( O; v; mEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
6 \- h: ^) J) C% ?changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
' P/ j" _- L* D- Z( gIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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0 d+ [" ^& _/ q/ ~% |/ s3 ?The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only